FX.co ★ Australia's AIG Construction Index Posts Dramatic Recovery in February

In a significant turnaround for Australia's construction sector, the AIG Construction Index for February 2025 reported a drastic improvement, rising to -3.7 from a concerning -20.0 in December 2024. This data, updated on March 4, 2025, marks a crucial recovery period for the industry, which has been navigating several economic challenges.

The index's sharp rise suggests a notable easing in contraction within the construction sector. Analysts suggest that easing supply chain issues and increased infrastructure investment are likely contributing factors to this positive trend. In December, the construction sector experienced heightened difficulties, highlighted by the steep index score of -20.0, indicating severe contraction and disruption.

With February's index nearing neutral territory, industry stakeholders are expressing cautious optimism about the sector's resilience and potential for sustained recovery. The trajectory of the index will be closely monitored in the coming months to assess whether this positive momentum can be maintained in Australia's construction industry.